Separating Days of a Booking Across Months for Taxes

16 Replies

Quick question! I have a spreadsheet on which I'm tracking all of my revenue & taxes that need to be paid.  For tax purposes, do I need to breakdown a stay that goes across months? 

Originally posted by @Reagen Natho :

Quick question! I have a spreadsheet on which I'm tracking all of my revenue & taxes that need to be paid.  For tax purposes, do I need to breakdown a stay that goes across months? 

 Taxes are done my calendar year

No.  Unless your municipality has something weird like quarterly or semi-annual sales/occupancy tax.

Taxes are done once per year. I'm pretty sure you claim it in the year received. So if you book across Dec and Jan and you receive the payment in Dec, then you would claim it in the in the year were Dec fell.

I believe I have to remit state (for Vrbo) and local lodging taxes monthly... I may very well be wrong, I'm in my first month with my STR.

Many states require sales/transient room taxes to be paid quarterly (or some other non-yearly interval). That said, I just remit them based on the start date of the reservation. I think that so long as you're consistent it's not going to matter. 

@Paul Sandhu , yes, Servierville has the local monthly lodging taxes...

Coffeyville has another claim to fame! I was watching The Highwaymen last night on Netflix and the main characters were in search of Bonnie & Clyde in none other than Coffeyville, KS! 

BTW, VRBO has a nice function under Reservation Manager..Financial Reporting that will let you run a report for a given time period. I just plug in the dates of my filing period and get my totals to use in my quarterly filing. If you use Airbnb, check to see if they remit taxes on your behalf (they do in my state, which is sooo nice).

@Jason Hendrickson Thank you! I will check that out.  I have not had very many bookings on Vrbo (for some reason my listing isn't coming up on date searches and they're working on it) so I haven't explored much of their site.  Airbnb does remit my state and county taxes, but doesn't do the 3% that has to be paid local.  I wish they did! 

@Reagen Natho I agree with @Jason Hendrickson that it won't matter so long as you're consistent about it.  However if you get fed up with all the nonsense of all the varying TN taxes, sign up with Avalara to do them for you.  So much more straightforward than 3% here, 9% there (for non-AirBNB bookings) every freaking month - but I have three properties in Sevierville so filing for all of them each month was a real PITA.  Now I just report my gross revenue to Avalara each month and they handle the rest, easy peasy.

@Reagen Natho   The Bonnie and Clyde thing isn't complete fiction.  It's based on another event.  There were 5 outlaw brothers that tried to rob 2 banks at the same time back in the 1860's.  Local citizens saw what was going on and set up a perimeter around the 2 banks.  Big shootout.  4 robbers and 2 citizens died.  The 5th robber was shot 23 times but lived.  He spent 10 years in prison, got out, moved to California and became a REAL ESTATE agent.

For those of you in Sevierville, or where Airbnb does not collect taxes, do you add it as a separate charge on your listing or do you just take it off of your gross earnings?

@Reagen Natho i think what you’re asking is... if they check in the 29th and leave the 2nd which month do you pay those sales/occ taxes? If you’re using mylodgetax.com they’ll do it for you which I recommend. Otherwise just sort your payment history on AirBnB/VRBO by the month and it’ll tell you the total for that month. Either platform releases funds the first day of the stay. But don’t over think it.

@Nancy Bachety again... what kind of tax are you referring to? Airbnb pays your sales tax for you in the state of TN. They will not pay your Occ tax. VRBO/Homeaway don't pay either one. Please elaborate and I can answer your question! thanks 

@Lucas Carl (my phone isn't pick you up)

Sorry I wasn't clear. I meant the 3 % that Airbnb does not collect. 

And the Dalton gang.

apparently they were trying to stay with Paul and he got a little miffed

Originally posted by @Reagen Natho :

@Paul Sandhu , yes, Servierville has the local monthly lodging taxes...

Coffeyville has another claim to fame! I was watching The Highwaymen last night on Netflix and the main characters were in search of Bonnie & Clyde in none other than Coffeyville, KS! 

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